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What does New Jersey’s marijuana vote mean to me?
Seven out of ten New Jersey voters this month affirmed that we must decriminalize marijuana. The state’s Attorney General quickly announced that all marijuana prosecutions are paused while we wait for cannabis industry legislation. Now the state government is scrambling to find ways to generate massive amounts of tax revenue from the drug. Much regulation…
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Cannabis programming in New Jersey
The New Jersey Society of CPAs is moving at a rapid pace following passage of the legalization referendum on November 5, 2020. I’ve been a member of the Cannabis Interest Group at @NJCPA since its inception. My @potCPA business practice is narrowly focused but I am pleased to see that they have adopted the following…
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Tax Change Needed to Level the Playing Field for Small Businesses, Minorities and Women in Cannabis Marketplace
This statement was released 11/5/2020 by Ralph Albert Thomas, CPA (DC), CGMA, CEO and Executive Director New Jersey Society of Certified Public Accountants. “On Tuesday, New Jersey voters approved a constitutional amendment to legalize cannabis. That was just step one in allowing cannabis sales to proceed in New Jersey. Steps two and three will be the…
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What does New Jersey’s pot vote mean to me right now?
Going forward, cannabis will primarily be a revenue issue and not so much a criminal issue in New Jersey. But what does that mean to the individual user or the spiriting cannabis small business entrepreneur right now? A logical concerned person needs a way to help guide their immediate actions and decisions in the uncertain…
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NJ decriminalization referendum update
New Jersey voters will decide if pot should be decriminalized in the November 3 election. Every indication is that the decriminalization measure will pass. One of the loudest opponents of the New Jersey decriminalization ballot referendum also happens to be (presumably) one of the largest black market operators. No surprise there. The vote will disrupt…
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Cannabis taxes will drive consumers back to unlicensed channels
Common sense, anecdotal conversations and third party reports tell us that the unlicensed pot industry is growing and will always be larger than the licensed industry. One report in September 2019 estimated that the unlicensed industry in California is three times larger than the licensed industry. In other states the unlicensed industry approaches 100% of…
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Tax Court upholds “gross receipts method” to determine tax liability
A recent U.S. Tax Court Case captioned “Raymond Chico and Ruby Chico v. Commissioner”, Respondent upheld the use of a very simple tax accounting tool by the IRS in determining the tax liability of a cannabis-related business. The IRS used the ‘gross receipts method’ to add up all receipts from all sources and determined that…
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Tax Court upholds IRS over legal dispensary
A recent U.S. Tax Court case challenged the ability of the Internal Revenue Service to deny all tax deductions as invalid for a cannabis-related business. The business “Northern California Small Business Assistants Inc.” was a legal dispensary in California. The Tax Court denied all of the arguments of the business as invalid and upheld the…
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What you should know about Worker’s Compensation Insurance
Too many hardworking small business owners fall victim to false beliefs and rumors about the law and wind up risking everything. I have other helpful resources about workers compensation insurance to share once we know what applies in your specific situation. Reach me through the contact information at tonynovak.com.
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Big Marijuana Enters South Jersey
This week Acreage Holdings, one of the world’s largest vertically integrated international marijuana companies, said it was buying “100% of the equity interests” in Compassionate Care Foundation in Egg Harbor in anticipation of the New Jersey’s intention to legalize cannabis for adult recreational use. Compassionate Care Foundation’s vertically integrated operations include licenses for cultivation, manufacturing…
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